E-Book Industry Trends in Korea

Kiyoung Chang

Published online: 13 August 2013

� Springer Science+Business Media New York 2013

Abstract The role of e-books in Korea has been a puzzle for the rest of the world

due to its late acceptance and development in a country that has such a highly

developed and wide ranging computer based technologies. The article provides a

twenty-year history with a focus on the past 3 years of the emergence of the e-book

and related smart phones as prime platforms and then the related development of

content. The review also includes the entry of international players such as Ama-

zon’s Kindle, Apple and Google with a summary of trends as the role of e-books

continues to evolve.

Keywords Amazon � Android system � AniPang � Apple � Barobooks � Google �KAKAO � Kyobo Books � Naver News � Ridibook � Smart phone � Samsung �TStore � Yein Information � Yes24

The e-book industry was introduced in Korea in the mid-1990s when Yein

Information and Barobook started e-book services after which the Korea Electronic

Book Publishing Association was established in 1992. For the past decade, e-book

content was read only on a desktop computer and a laptop computer. For this reason,

there were complaints that e-books lacked sufficient contents and readability was

poor compared with that of printed paper books.

However, since 2011, fundamental changes have taken place in the e-book

industry. In 3 years after Amazon of the U.S. released the Kindle, as a specific

e-book reader in Korea, sales of e-books surpassed the sales of other e-books in

different markets.

K. Chang (&)

Korea Electronic Publishing Association, Chungrim-Art Space 3, 4F Monbal-dong,

173 Hoedong-gil, Paju-si, Gyeonggi-do 413-120, Korea

e-mail: alice0776@hanmail.net

123

Pub Res Q (2013) 29:244–251

DOI 10.1007/s12109-013-9323-6

In Korea, there have been lots of meaningful changes since smart phones and

tablet PCs were introduced. More than 35 million smart phones and two million

tablet PCs came into wide use. Distribution companies emerged such as Kyobo

Book, Yes24, SK Planet (Tstore), Barobook, U Paper, and Book Cube Networks,

Initial Communications (RidiBooks). We expect to see higher sales growth rate of

e-books than last year.

In 2012, the sales of Kyobo Book amounted approximately 15 billion won this

year’s sales are expected to exceed 40 billion won. The sales of Yes 24 amounted

about 5 billion won in 2012 and 10 billion won this year. And the sales of Book

Cube Networks recorded 9 billion won in 2012 and the sales are expected to double

in year 2013 to amount 18 billion won.

According to ‘‘Smart Content Market Research 2012’’ published by Korea Creative

Contents Agency (KOCCA) in March, 2013, the market size of the smart contents of

the world was about 136.8 billion dollars in 2012, and it is expected to be 229.3 billion

dollars in 2015 with the annual average growth rate of 18.8 %. Korea’s market size of

the smart contents was 1.9472 trillion won in 2012, and it is expected to grow to

amount 3.5399 trillion won in 2015 with the annual average growth rate of 22 %.

By genre, the global market size of the smart contents is 30.1 billion dollars in

games, 15.2 billion dollars in edutainment, 9.2 billion dollars in music, and 8.9 billion

dollars in e-book and video, respectively, which suggests that cultural contents

account for 83.5 % of the market. The share of games, e-book, music, video and

edutainment is also large in Korea, even though there are small differences between

genres. The share of the market size is similar to the global trend (Table 1).

With these changes, printed paper book publishing companies which were

doubtful about e-books began to participate in the e-book business. E-book contents

increased sharply from about 100,000 to more than 150,000 titles, and the number

of e-books as separate volumes is expected to be more than 200,000. As terminal

units come into wide use and contents increases, the number of readers who buy

e-books again grows in a directly related cycle.

These changes create several key issues this year, which did not exist before.

First, the sales of e-books began to exceed 10 % of paper book sales, even though

the growth is limited to some contents such as app-books. Second, the number of

e-book companies run by one person is sharply increasing. Third, large companies

began to enter the e-book market that has been the area of the small and medium

size companies. Fourth, following electronic dictionary and electronic books of

separate volumes, digital textbooks began to come to the fore. Fifth, global

competition in the e-book market is beginning. Amazon, Google and Apple entered

the markets in North America and Europe year ago and now they are entering the

Asian market this year. Google opened an e-book platform in Korea for the first

time in Asia, and Amazon also established a corporation in Korea.

Smart Device, Putting Wings to Contents

In Korea, 30 million people use smart phones. The accurate number of smart phone

users is 33.73 million as of the end of 2012. The growth rate of the number of users

Pub Res Q (2013) 29:244–251 245

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246 Pub Res Q (2013) 29:244–251

123

suggests that within one or 2 years, all Korean people would use smart phones. As

smart phones became popularized, most contents related to daily life are

concentrated into the format of smart phones in the hands of people. Music,

videos, books, magazines, newspapers and all the other information are being put

into smart phones as if they are being sucked into a huge black hole (Fig. 1).

It did not take long before the current phenomenon to happen. Six years ago, the

smart revolution from iPhone was the starting point. Apple opened a new path that

has not been developed by anyone else. And the path is not just for Apple anymore.

Ten’s of thousands developers are offering contents to the Apple App Store or

iBooks, and millions of consumers taking the path together to access the

information. And it is also the path for the consumers using Android phones.

Global Market: Platform War for Contents

The ‘‘smart’’ contents market is growing at a remarkable speed with the popularization

of smart phones, tablet PC, smart TV, and other smart devices. It is a large ecosystem

where platform businessmen, contents providers, and consumers exist together.

As Amazon made a global hit with Kindle and e-book, Apple occupied the smart

phone market in an instant with iOS operating systems, combined with iPhone and

iPad. And Samsung Electronics and Google which entered the market belatedly

behind Apple are exceeding Apple with the Android operating system.

What is noteworthy is that in this global market platform war, the hegemony in

the global IT market is going from hardware companies such as IBM, HP, Samsung

Electronics and LG electronics to companies having software power such as

Google, Apple, and Amazon.

Fig. 1 Different content and formats for the children’s book market

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And the game which will be seen right after the platform war is the contents war.

Google acquired Motorola to brace itself for patent war, but the ultimate reason for

the acquisition is that it wanted to establish a system similar to Apple ecosystem

which combines devices and contents. Amazon started with the e-book, and it is

expanding its various contents based on KindleFire HD. Microsoft also released

Windows Surface tablet pc based on Windows 8, and it is preparing itself for the

contents war by investing in Barnes & Noble. Samsung Electronics is also following

this trend in Korea (Table 2).

Korean Market: Content Strategy Competition of Google/Apple on OS Base

As domestic businesses have no independent operating system, they have to survive

the current competition on the base established by Apple and Google, and have to

develop themselves. After all, domestic businesses need to focus on contents

relevant and related to the culture of Korea.

Thirteen years ago, in an era of cable Internet, there were outstanding portal sites

such as Daum and Yahoo Korea. There was a fierce competition to become the top

portal site between Daum with e-mail service, Hanmail as a competitive power, and

Yahoo Korea with sufficient capital from headquarters as a competitive power.

Naver, a late comer, introduced ‘‘Doosan Encyclopedia’’ with a dreary search

engine. And Naver fascinated elementary school students throughout the nation,

who use the portal site for homework, and the traffic began to increase by geometric

Table 2 2012–2013 Platform Size in 2012–2013

Device Operating

system

Contents

platform

No. of

contents

Share of

operating

system (%)

Apple iPod iOS AppStore (APP) 770,000

(APP)

18.8

iPhone iBooks (e-Book)

iPad iBook-Author

(Textbook)iPad Mini

Amazon Kindle

KindleFireHD

Android Amazon Kindle 1 million

(e-Book)

68.8

Google Nexus7 Android Google Play

(APP, e-Book)

700,000

(APP)

68.8

Nexus10 5 million

(e-Book)

Samsung

Electronics

Galaxy Series

GalaxyNote10.1

Android Samsung Apps 80,000 68.8

Microsoft Windows Surface Window8

(winPhone

included)

AppStore 20,000

(APP)

2.5

Source IDC

248 Pub Res Q (2013) 29:244–251

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progression. Realizing the power of contents, Naver started to build various contents

archives including news and expert knowledge. As a result, it became the

indisputable top portal site (Fig. 2).

Naver is the leader of contents in the era of cable Internet and KAKAO is

growing at a terrific speed to become the contents leader in a mobile era. Naver

succeeded in trying contents archiving in a search engine, and KAKAO became a

success by combining SNS with contents.

KAKAO occupied the platform through KAKAO Talk, SNS service and its sales

amounted to half of the sales of NAVER through AniPang, game service. AniPang is a

simple game of matching more than three animal characters within 1 min. As it is easy

and simple, anyone can enjoy it and become easily addicted to it. Because of these

characteristics, it is safe to say that there is no one who does not know this game

regardless of age from elementary school students to the elderly. In particular, it is being

widely enjoyed by housewives who were not accustomed to using a computer (Fig. 3).

Recently, KAKAO started a service called PageStore followed by AniPang. It is

similar to the e-book in terms of the form, but it is easy to create on the web, and

lighter in terms of volume and less expensive than any e-book service. The service

divided the e-book to meet the needs of young people who prefer reading short

Fig. 2 Naver News contents archive of the World’s highest standard

Fig. 3 KAKAO AniPang/PageStore

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writings to long ones and it combines music and video in an e-book. For these

reasons, it is a representative contents strategy in this mobile era.

Consumer: Evolved to Become Playsumer and Participating as ContentsCreators

When it comes to smart phone, tablet PC, and smart TV, Korean consumers are

world-renowned early adopters. The change rate of mobile phones each year is at a

relatively high rate of 67.8 %, but there is a unique reason behind the short loyalty.

The originality of Korea’s mobile phone users is evidenced by various

applications made in large quantity by Korean developers on the smart contents

platform, and 1,500 e-book new contents created daily. Consumers use smart

contents in wide range of areas in daily life such as games, reading, transportation,

SNS, medical service, tourism, and finance.

In the meantime, according to definition of consumers by Alvin Toffler, the

Korean consumers’ pattern went beyond prosumer and became playsumer

(proactive participants who evolved from prosumer, consumers who are interested

in trends and to enjoy contents as if they play).

In addition, regarding contents consumption, consumers share content or

information with friends and spread them in the form of ‘cooperative consumption’

rather than owning them for themselves. For instance, recently launched KAKAO’s

PageStore provides service which allows consumers to see contents for free when

they recommend it to friends.

It is not that only the patterns of contents use among consumers are changing.

Consumers are increasingly participating in contents creation. In the case of

Table 3 Korean users’ original smart contents utilization

‘Smart wallet’ which includes all the cards in the world is an original application and its originality

exceeds that of transportation card system. Coupons, housekeeping books, and gift certificates are

integrated in the smart wallet

Electronics and Telecommunications Research Institute (ETRI) developed ‘Ginie Talk’, an automatic

interpretation application of between Korean and English, and the number languages serviced in the

application will be increased to eight

Map applications of Naver and Daum provides more sophisticated and user-friendly service than

Google application

Game (AniPang) integrated with SNS, Social commerce (Coupang and Ticket Monster) integrated

with SNS

‘Genre rental store’ of Barobook, which replaces book rental stores and ‘Saem’ service of Kyobo

Book

\Services provided to Playsumers[

‘December24’, a beauty & health store, runs ‘self-makeup service zone’. Consumers are able to try

cosmetics without any charges

‘Concierge’, a shop specialized in digital appliances, runs stores which allow consumers experiences

products themselves. Consumers are able to enjoy shopping as if they play and they are provided

customized service when they want it online

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e-books, there is a service supporting ‘self-publishing’ in Kyobobook, U Paper, and

Barobook. Not only genre literature authors and cartoonists, but also white-collar

workers are flocking to the service. They are familiar with Internet culture and they

understand well multimedia and multi-channel of new media. I am certain that they

will open the era of genuine contents alchemist in the 21st century. More changes

are and will take place in Korea’s e-Book industry in the coming years (Tables 3, 4).

Table 4 Korea Electronic Publishing Association

Korea Electronic Publishing Association was established in 1992. It is the representative private

organization in Korea and led Korea’s e-book industry for the past 21 years. Korea Electronic

Publishing Association supports e-book business of publishing companies and contents companies

through three centers such as Electronic Publishing Education Center, Electronic Publishing Support

Center, and Electronic Publishing Certification Center. In particular, Electronic Publishing

Education Center fosters about 500 experts of e-book every year

Korea Electronic Publishing Association conducts specialized businesses through ten specialized

committees such as Academic Journal Committee, Digital Comics Committee, Education Business

Committee, Distribution Committee, Global Committee, E-learning/Digital Textbook Committee,

Contents Committee, Public Project Committee, Solution Committee, and Electronic Publication

Certification Committee

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